January 20, 2009
Matson cuts non-union jobs
Matson Navigation Company's parent Alexander & Baldwin, Inc. (NYSE:AXB) today said it would cut some 60 non-union jobs at Matson. It called the move "an expansion of ongoing cost reduction initiatives in response to an expected continued slowdown in economic activity."
"Ongoing initiatives to decrease our costs include workforce reductions, commencing with steps taken today to pare staffing by 10 percent at Matson Navigation Company ("Matson")," said W. Allen Doane, chairman and chief executive officer of A&B. "Other measures to be implemented over the coming months at various A&B business units include: elimination of salary increases; continued reductions in general and administrative expenses; and reductions in incentive award targets, profit sharing targets and workforce levels." Doane continued, "And while fourth quarter and full-year 2008 earnings are expected to be good, these and other proactive measures are necessary in view of the current economic climate."
Matson plans to reduce its non-union headcount by approximately 60 positions, augmenting position eliminations that resulted from hiring freezes adopted in 2007 and 2008.
"Over the past several years, Matson has been diligently implementing cost reduction measures across the board, without undercutting the reliability of its service," said Matthew Cox, president of Matson Navigation Company. "We remain fully committed to delivering industry-leading ocean transportation services in all of our trade lanes, and the actions we are taking will be seamless to our customers. Measures involving employees are difficult; however, it is important that Matson realign its cost structure to current demand."